LAMD-D27 Foreign National DSCR | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 660 or no FICO (DSCR <1: 680 or no score)
Max LTV – purchase: 75% (≤$1M); 70% $1.5M; 60% $2M; 55% $2.5M; 50% $3M
Max LTV – rate/term refinance: Same as purchase (limited cash-out)
Max LTV – cash-out refinance: 70% to $1M, 60% to $1.5M, 50% to $2M (680+ or no FICO); 660–679: 55% to $750K. Max cash-out loan $2M (condotel 65%/60%, max $500K).
Minimum loan amount: $75K
Maximum loan amount: $3.0M
Cash-out (cash in hand) limit: Unlimited below 55% CLTV with 680+; $1M at 55% or less under 680, at 55–65%, or above 65% with 700+; $500K above 65% under 700. No-score borrowers: ask us (plan on the lower tiers). Non-occupant co-borrowers can't do cash-out.
LTV reductions & overlays: Max 75% up to $1M stepping to 50% at $3M; no-FICO uses the same grid; 660–679 limited to 65% ($1.5M) purchase/rate-term and 55% ($750K) cash-out. Condotel 70% ($1M) and 65%/60% on cash-out (max $500K). Cash-out 70%→50% (max $2M). DSCR 0.75–0.99: 75% purchase/rate-term, 70% cash-out; DSCR under 0.75: 70% purchase/rate-term, 65% cash-out (680 FICO or no score). Vacant property refinance: 70%. Any refinance of a property acquired within 12 months: −5%. Quitclaim acquisition within 12 months or significant entity ownership change within 6 months: 65%. Condo limited review: 75% (Florida 70%). Florida new-construction PUD 75%, condo/condotel 70%. Properties in short-term-rental communities capped lower (ask us). Venezuelan borrowers 60% (55% cash-out) with 12 months' reserves.

DSCR requirements

Minimum DSCR: No minimum on SFR/PUD/2–4 units (DSCR under 1.00 needs 680 FICO or no score and reduced CLTV); condos and condotels need 1.00.
DSCR below 1.00: Yes on SFR/PUD/2–4 (680 FICO or no score): DSCR 0.75–0.99 max 75% purchase/rate-term, 70% cash-out; under 0.75 max 70% purchase/rate-term, 65% cash-out. Condos and condotels need 1.00.
No-ratio (no DSCR calculated): No true no-ratio option – DSCR is always calculated, but there's no minimum on SFR/PUD/2–4 units (under 0.75: 70% purchase/rate-term, 65% cash-out, 680 or no score); condos/condotels need 1.00.
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA; interest-only loans: ask us whether the interest-only or amortizing payment is used. DSCR under 1.00 needs 680 FICO or no score; condos and condotels need 1.00. Long-term rent at 100%; month-to-month OK. A new lease needs 2 months' payments and on refinances is capped at 125% of market. Short-term rent counted at 75%. Leases to the borrower's own companies not accepted.

Products & terms

Products: 5/6 ARM, 30yr fixed, 40yr fixed
Interest-only: Yes – 120 mo IO, min FICO 680
Prepayment penalty: Investment only, where state law allows: charged between 6 months and 5 years after closing, equal to 6 months' interest on prepayments above 20% of the original balance. Not allowed in AK, AR, KS, MI, MN, NM, RI or OH (1–2 units, loans up to $116,356) – buydown required. Not allowed on loans to individuals in IL, NJ or VT (buy down or close in an LLC; IL max 3 years). Max 2 years in MS; 3 years in ID, MA, DC and MD (DC/MD charge is 2 months' interest). Not allowed on balances under $75K in VA and MD, or under $329,411 on 1–2 units in PA (2026). A property listed for sale in the past 12 months requires a 36-month penalty that can't be bought down.
Reserves: 12 months PITIA.

Borrower & credit

Housing payment history: 0x30x12 and 0x90x24. Payments on a manufactured home or second mortgage count as mortgage history.
Credit events (BK, foreclosure, short sale, modification): Bankruptcy, foreclosure, short sale, deed-in-lieu, loan modification, forbearance, deferral and 120+ day lates all count as credit events and need 48 months (bankruptcy measured from discharge/dismissal to closing). More than one bankruptcy in 7 years requires 7 years from the latest.
Forbearance, deferrals & modifications: Forbearances, deferrals and modifications are credit events (48 months). Exception: after a COVID-19 forbearance the borrower is eligible once 3 consecutive on-time payments are made by the note date.
Collections, charge-offs, judgments & liens: Collections/charge-offs under 24 months old may stay open up to $2,000 total; 24+ months up to $2,500 each; time-barred and all medical collections may stay open. On this program, any balances above those limits must be paid in full. Tax liens and court-ordered judgments must be paid in full. An IRS installment agreement may stay in place only if no federal tax lien has been filed, the agreement is documented and at least one payment has been made; otherwise it must be paid off.
Tradelines & credit depth: No tradeline minimum. A bank reference letter (dated within 90 days, 2+ years open and active, no derogatory history, borrower's own account) is required unless the borrower has qualifying US credit (standard tradelines, or one active tradeline open 24 months with no derogatory history).
First-time homebuyer: No – must own primary or have owned residential property in past 36 mo
First-time investor: No prior-investment experience required, but the borrower must own a primary residence or have owned residential property (any country) in the past 36 months. First-time-homebuyer terms (680 FICO, DSCR above 1, $1M max, no interest-only) may be available – ask us.
Foreign national: No US score or 660+ FICO; a bank reference letter (dated within 90 days, 2+ years active, no derogatory) is required unless the borrower has qualifying US credit. Must own a primary residence or have owned residential property (any country) in the past 36 months – foreign first-time homebuyers generally ineligible. Third-party proof of foreign residence dated within 90 days. Passport and active visa (or ESTA under the Visa Waiver Program; Canada and Bermuda exempt). US bank account required before closing. 12 months' reserves. Russian/Ukrainian citizens eligible but income/assets from Russia/Ukraine not accepted; Venezuelan assets ineligible and Venezuelan borrowers capped at 60% (55% cash-out). Investment properties only on this program (second homes only under the full-doc/asset programs). First-time-homebuyer terms (680 FICO, DSCR above 1, $1M max, no interest-only) may be available – ask us.
ITIN borrower: No
Non-permanent resident: N/A
LLC / entity vesting: Individual, joint, revocable trust, or LLC/corporation (no series LLCs) with up to 4 owners, all borrowers and guarantors (ask us about excluding owners under 25%). One layer of entities allowed if the top entity owns 100% (no trust layering). A significant entity ownership change within 6 months on a refinance = max 65% CLTV. Irrevocable and land trusts ineligible. Leaseholds case-by-case (never tribal land).
Gift funds & assets: Allowed with a 10% borrower contribution (under 80% CLTV). Overseas assets seasoned 30 days.
Financed property / exposure limits: No limit on other financed properties. Lender exposure: $5M or 10 loans per borrower within any 6-month span.
Other borrower rules: Representative score: ask us which borrower's score is used; any US citizen/permanent resident co-borrower must have 680+ and the whole loan follows foreign-national rules. Non-occupant co-borrowers can't do cash-out. Texas: visa holders who are citizens of China, Russia, Iran or North Korea ineligible. Florida purchases need the Florida Land Title Association Buyer's Affidavit. Ineligible: diplomatic immunity, OFAC-sanctioned countries, irrevocable/land trusts, under 18.

Property

Eligible property types: SFR, PUD, 2-4, warrantable & non-warrantable condo, condotel, rural SFR
ADUs & unpermitted additions: One-unit homes with ONE ADU are eligible (multiple ADUs not permitted); the ADU needs a full kitchen and bath. Unpermitted ADUs, outbuildings and conversions are acceptable when they're excluded from the appraised value, typical for the area, and the title commitment shows no permit violations – but they earn no value. ADU rent can count when the appraisal shows zoning compliance is legal (a permit itself is not required to establish that) with at least one comp that has an ADU. Purchase: lower of 1007 or actual rent; refinance: 1007 rent with the current lease and 2 months' receipts. ADUs can't be used for short-term rent.
Non-warrantable condo: Warrantable and non-warrantable condos eligible. A limited review is allowed up to 75% LTV on investment properties (70% in Florida); higher LTVs need a full review. Limited review: single-entity ownership up to 2 units in 5–20 unit projects or 30% in 21+ units (waivable on a purchase that brings concentration to 30% or less); commercial space up to 50%; project 100% complete; established projects 90% sold and closed (new projects 75% under contract); not operated as a hotel/motel/resort; no significant deferred maintenance or disqualifying litigation; other features case-by-case. Lender finances at most 20% of units in projects over 10 units. Review waived for detached units and 2–10 unit projects not part of a master association (not condotels). Rural condos ineligible. Minimum DSCR 1.00 for condos. Florida new-construction condos capped at 70%.
Condotel: Allowed: 500+ sq ft with full kitchen and separate bedroom (kitchenettes case-by-case), no 'motel' in the name, no mandatory rental pools, no termination/bankruptcy proceedings, not rural or agricultural zoning, must also meet limited condo review. Requires 680+ FICO or no score on this program: purchase/rate-term 70% to $1M; cash-out 65% (700+ or no score) or 60% (680–699), max $500K. Lender finances at most 20% of units in projects over 10 units. Minimum DSCR 1.00.
Rural / acreage: Rural/agricultural properties allowed (rural = rural or agricultural zoning, appraiser designation, or factors like 50%+ vacant land use, 10+ acre neighbors, outbuildings, unpaved road, population under 25,000): 680 FICO or no score, 1 unit only (one ADU allowed), neighborhood at least 25% built up, not a working farm or income-producing, max 10 acres. Rural condos and rural condotels are not eligible.
Minimum square footage: 500 sq ft of living space minimum; in 2–4 unit properties each unit must have at least 500 sq ft.
Mixed use: Not eligible – mixed-use properties (2–8 units) are on the ineligible property list.
5+ units / multi-property: No
Ineligible properties: C5/C6 or fair/poor condition, Q6 construction, under 500 sq ft (each unit), model leasebacks, private transfer covenants, commercial, co-ops, domes, geothermal homes, timeshares, over 10 acres, unique properties, assisted living, working farms/ranches/orchards, mobile and manufactured homes, 5–8 units, mixed use, incomplete properties, barndominiums. Leaseholds are case-by-case (never tribal land). Every unit needs a full kitchen with a stove or stove hookup.
Declining markets: New construction only (certificate of occupancy within 12 months of the note, builder-controlled HOA within the last 6 months, or the developer is the seller): 'declining' markets max 60% CLTV; 'over-supply' markets and marketing times over 6 months not allowed; max 5 acres; agricultural zoning ineligible; value can't exceed the top of the predominant price range by more than 10%. No separate declining-market rule for existing homes.
Appraisal, review & insurance: Full appraisal (no waivers) dated within 120 days of the note. Loans up to $2M need a secondary valuation (CU score 2.5 or less, else AVM with 90%+ confidence, else CDA, else a second appraisal at the borrower's expense) that is no more than 10% below the appraised value; loans over $2M need a second full appraisal (lower value used). One transferred appraisal accepted (not on flips; AVM support required). Condition C1–C4 and quality Q1–Q5 only. Hazard insurance at replacement cost with max 10% deductible; flood escrows can't be waived; rent-loss insurance not required. Points and fees under 7%.

Rental income

Rent used on a purchase: Lease or 1007/1025; new lease with 2 mo payments
Rent used on a refinance: Existing lease or 1007/1025 market rent. An existing lease more than 25% above the 1007 can be used in full with 2 cancelled checks; a new lease on a refinance needs 2 months' payments and is capped at 125% of 1007 market rent.
Vacant / unleased refinance: Allowed – max 70% CLTV
Short-term rental (Airbnb/VRBO): Yes – 75% of short-term rent counted (12-month history via short-term rental agreement or a 1007 showing short-term rent). Without a history, estimated short-term income (75% of AirDNA with 60%+ occupancy, or 75% of a 1007 with short-term comparables) is allowed on purchases only. Not allowed on a refinance while a long-term lease is in place; short-term rent from an ADU not allowed. Borrower must comply with state/county rules and sign the short-term rental addendum. Banned in Vermont and NYC's five boroughs (except condotels); STR-community properties subject to rate-sheet CLTV caps.
Short-term rental documentation: 12-mo STR agreement average, 1007 (STR), or purchase-only AirDNA Rentalizer (occupancy ≥60%) – all at 75%; STR addendum; not in VT or NYC boroughs (except condotels)
Short-term rental limits: 75% of STR income used; refi STR not allowed if under long-term lease

Refinance seasoning

Cash-out seasoning: Existing first mortgage must be 6+ months old. Under 6 months on title only with delayed financing, a no-value quitclaim within 12 months (max 65%), inheritance/divorce award, or time in the borrower's majority-owned LLC or revocable trust. 6–12 months: −5% from the grid, renovations must justify the value, and if listed after purchase value is the lower of list price or appraisal.
Delayed financing (cash purchase recoup): Cash purchases within 6 months: treated as cash-out; loan capped at total cash investment (price plus documented improvements); value is the lower of appraisal or cost; gifts used to buy can't be reimbursed.
Recently listed for sale: Rate/term: must be off the market by application. Cash-out: not listed within 6 months of application. Investment property listed within the past 12 months requires a 36-month prepayment penalty that can't be bought down (unless the state prohibits prepays).

Other terms

Seller / interested-party concessions: 6% at CLTV of 80% or less, 4% above. Not allowed when the purchase price exceeds list price by 3% or $5,001.
Secondary financing: Any other lien must be recorded and clearly subordinate to the new loan. Seller-held seconds not allowed; no negative amortization; a second with a balloon due within 5 years of the new first's note date is ineligible; PACE/HERO liens must be paid off at or before closing. On a rate/term refinance, a second used to buy the property can be paid off regardless of seasoning; other closed-end seconds must be 12+ months seasoned and HELOCs 12+ months with under $2,000 in draws in the last 12 months, or the loan is treated as cash-out.
State & local restrictions: Not available in Hawaii, Maryland, Philadelphia County PA or the USVI. Originators without a license also can't close in AZ, CA, DC, ID, MD (Baltimore County/City), MI, MN, NV, NM, ND, OR, SD, UT, VA or VT. Texas: visa holders who are citizens of China, Russia, Iran or North Korea are ineligible. Florida purchases need the Florida Land Title Association Buyer's Affidavit. STR income not allowed in Vermont or NYC's five boroughs (except condotels). Florida new-construction PUDs 75%, condos/condotels 70%. Prepayment penalties restricted or prohibited in several states.

Additional details

Notes: Venezuelan borrowers max 60% (CO 55%), 12 mo reserves. Russian/Ukrainian eligible but no RU/UA income/assets. Excluded: HI, MD, Philadelphia County PA, VI. FL new-construction PUD max 75%, condo/condotel 70%. Investment only. 1031 eligible.

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